by Ezequiell » Fri Apr 27, 2012 10:38 pm
So a year ago I backed out of a parking garage and hit a post with my mirror. I called the insurance company and filed a claim since a quote for a repair was mOre than the 1000 deductible I had.
I ended up not using my insurance claim. I was able to find another way to fix my car on my own. I called my insurance company to cancel the claim now a year and a half later I'm moving to a different state and when I try to get insurance for the state of Nevada the found that claim and they want to charge me 30 extra bucks Bremond due to having that claim that I never really used. Is that how it works? What can I do to lower my insurance in that case. I feel I'm paying for somethin I didn't used in the past. I just need advice. Thank you
I ended up not using my insurance claim. I was able to find another way to fix my car on my own. I called my insurance company to cancel the claim now a year and a half later I'm moving to a different state and when I try to get insurance for the state of Nevada the found that claim and they want to charge me 30 extra bucks Bremond due to having that claim that I never really used. Is that how it works? What can I do to lower my insurance in that case. I feel I'm paying for somethin I didn't used in the past. I just need advice. Thank you
Posted: Tue May 01, 2012 04:53 am Post Subject: Unused claim
Your insurance provider might still consider it an accident, even if you had cancelled the claim. He may increase the rate taking that into consideration.
Do you have the documents for your claim cancellation? You can present them as proof to your new insurance provider. If you don't have the documents, you'll need to contact your previous insurance company for the necessary details.
Posted: Tue May 01, 2012 11:07 pm Post Subject:
Just about every state has laws on the books that prevent an insurer from increasing the premium for a loss that has not been submitted for payment. This doesn't mean that the accident won't be on your Motor Vehicle Record (MVR) if reported according to any laws in that state.
If you filed the accident with the Nevada DMV, it will be on your MVR. As such, any carrier has the right to charge accordingly, and this being an obvious at-fault incident, your rates will increase anywhere you go.
Finally, keep in mind that different areas have different rates. It could be that your rate went up when you moved to that different state.
InsTeacher 8)
Posted: Wed May 02, 2012 12:53 am Post Subject:
Carriers _do_ increase rates for at fault accidents even if nothing is paid out. I've seen many carriers do this so I doubt they are prevented from doing so.
The loss is reported as an at-fault accident and anyone who looks at the CLUE report will see this. The risk is how the person drives. If they were in one at fault accident then it's more likely that they will be in another accident. The exposure is greater. The exposure is not reduced if the person elects to pay for the loss themselves.
You can let your agent know that nothing was paid out and he/she can pass this information onto their underwriters for consideration.
Posted: Wed May 02, 2012 02:53 am Post Subject:
Yes, this would be considered an at fault accident, even with no payment. You are probably losing an accident free discount. Since the damage to the car was more than $1,000, you could have received an accident surcharge, which would have been even more expensive.
California requires a certain dollar amount of damage to be paid for an accident (It used to be $750) where you are also more than 50% at fault, before it can increase your rates. Unless things have changed -- and they often do.
Posted: Wed May 02, 2012 12:14 pm Post Subject:
Has anyone considered referring the OP to the insurance company for an explanation of his coverage and rates? InsTeacher has come the closest by saying the rates in Nevada may be higher than where the OP moved from.
On the other hand, unless the $30 additional is per month, an increase of $60 per year would not cause most people much anguish. But it would prompt me to contact the insurance company and ask why the cost is going up.
Posted: Thu May 03, 2012 01:59 am Post Subject:
It is curious that the insurance company found out about the incident and not at the time of application. Typically, a application for car insurance will inquire about prior incidents. Had the incident been disclosed at the time of application an explanation could have been provided for the increased premium.
Possilbly, carriers in Nevada and the state where the OP moved from are allowed to obtain information from CLUE which may explain how the Nevada carrier found out about the prior incident. If so, the OP should contact the dept. of insurance in the state where the incident occurred to find out how to contact CLUE and correct their information. :)
Posted: Thu May 03, 2012 02:37 am Post Subject:
It is curious that the insurance company found out about the incident and not at the time of application.
An agent or even a carrier can give a quote based on limited information (you can even get them online) but then, before the policy is issues, they look at the CLUE report.
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